Permalink

Homes in Mobile area selling faster than one year ago

By ACRE Research

January 22, 2019

The Mobile median home sales price in December was $150,000, an increase of 7.2 percent from the same month in 2017. (iStock)

Sales: According to the Mobile Area Association of Realtors, Mobile-area residential sales totaled 340 units during December, down 2.9 percent from 350 sales in the same month a year earlier. Sales were up two units compared to 338 sales in November. Results were 8.8 percent above the five-year December average of 313 sales. Two more resources to review: Quarterly Report and Annual Report.

Inventory: Total homes listed for sale in the Mobile area during December were 1,359 units, a decrease of 13.3 percent from December 2017’s 1,567 units and a decrease of 5.6 percent from November 2018’s 1,439 units. Mobile also experienced a year-over-year decline in months of supply. December months of supply totaled 4 months, a decrease of 10.7 percent from December 2017’s 4.5 months. December’s months of supply also decreased 6.1 percent from November’s 4.3 months.

Pricing: The Mobile median sales price in December was $150,000, an increase of 7.2 percent from one year ago and an increase of 0.7 percent from the prior month. This direction is consistent with historical data (2013-17) indicating that the December median sales price on average increases from November by 8.8 percent. The differing sample size (number of residential sales of comparative months) can contribute to statistical volatility, including pricing. ACRE recommends consulting with a local real estate professional to discuss pricing, as it will vary from neighborhood to neighborhood. The average number of days on the market (DOM) for homes sold during December was 70 days, a decrease of 15.7 percent from 83 days in December 2017 and a decrease of 4.1 percent from 73 days in November.

Forecast: December sales were three units, or 0.9 percent, above the Alabama Center for Real Estate’s (ACRE) monthly forecast. ACRE projected 337 sales for the month, while actual sales were 340 units. ACRE forecast 4,598 total residential sales in the Mobile area for 2018, while there were 4,613 actual sales.

ACRE’s statewide perspective: After 10 consecutive months of gains, statewide residential sales in December decreased 1.6 percent year-over-year from 4,371 to 4,303 closed transactions. For the entire year, statewide residential sales increased 6.3 percent from 57,427 in 2017 to 61,062 in 2018. Home price appreciation in the state continued to climb as the median sales price in December increased 4.7 percent year-over-year from $151,667 to $158,772. The median sales price for all of 2018 was up 4.6 percent from 2017. Although nationwide inventory levels are trending upwards, Alabama’s residential inventory decreased 6.9 percent from one year ago. Low inventory levels were a major factor contributing to rising sales prices throughout 2018. With low inventory, it is not surprising to see homes selling more quickly than in previous years. Homes selling in Alabama during December spent an average of 102 days on the market, an improvement of 11 days from 2017.

NAR’s national perspective: During November, nationwide inventory for existing homes increased 4.2 percent year-over-year from 1.67 million to 1.74 million residential listings. According to Lawrence Yun, chief economist for the National Association of Realtors, “the market conditions in November were mixed, with good signs of stabilizing home sales compared to recent months, though down significantly from one year ago. Rising inventory is clearly taming home price appreciation.”